Requires DEP to conduct study of short and long term effects of water use by large-scale data centers.

S4400

SENATE, No. 4400

STATE OF NEW JERSEY

222nd LEGISLATURE

�

INTRODUCED JUNE 4, 2026

Sponsored by:

Senator� PATRICK J. DIEGNAN, JR.

District 18 (Middlesex)

SYNOPSIS

���� Requires DEP to conduct study of short and long term
effects of water use by large-scale data centers.

CURRENT VERSION OF TEXT

���� As introduced.

��

An Act
requiring DEP to conduct an evaluation of the effects
of water use by large-scale data centers.

����
Be It
Enacted
by the Senate and General Assembly of
the State of New Jersey:

���� 1.��� As used in this act:

���� �Artificial intelligence� or
�AI� means a machine-based system that can, for a given set of human-defined
objectives, make predictions, recommendations, or decisions influencing real or
virtual environments.

���� �Board� means the Board of
Public Utilities.

���� �Department� means the
Department of Environmental Protection.

���� �Large-scale data center�
means a facility primarily used for the storage, management, and processing of
digital or artificial intelligence data that meets or exceeds thresholds
established by the department, in consultation with the board, based on factors
including, but not limited to, water use, electric demand, physical size,
cooling capacity, computing capacity, or other indicators of substantial
resource consumption.� �Large-scale data center� includes facilities that house
computer and network systems, including servers, network equipment and
appliances, telecommunications, storage systems, monitoring systems,
Internet-related equipment and services, data communications connections,
environmental controls, fire protection systems, and security systems and
services.

���� 2.��� a.� No later than one
year after the effective date of this act, the department shall conduct an
evaluation of the effects of water use by large-scale data centers on drinking
water systems, wastewater systems, and the environment.� The evaluation shall include,
but not be limited to, the following information:

���� (1) the short-term effects of
water use by large-scale data centers, measured over the preceding three years;

���� (2) the long-term effects of
water use by large-scale data centers, measured over the preceding seven years;

���� (3) the anticipated effects of
water use by large-scale data centers that may be constructed in the future, as
distinct from existing large-scale data centers;

���� (4) any efforts undertaken by
the department or by large-scale data center operators to reduce the use of
water by large-scale data centers;

���� (5) how the use of water by
large-scale data centers has impacted overall State water use and costs;

���� (6) how the use of water by
large-scale data centers has affected the operational efficiency, cooling
requirements, or uptime of the data center due to water constraints;

���� (7) the direct or indirect
costs associated with the use of water by large-scale data centers, including
impacts on public water systems, ratepayers, or infrastructure upgrades
required to meet demand;

���� (8) an analysis of any
feasible water use reduction strategies which could be implemented by any
large-scale data centers operated in the State; and

���� (9) any other information
which the department determines to be necessary to produce a comprehensive
study.

���� b.� In conducting the
evaluation required pursuant to subsection a. of this section, the department
may:

���� (1) require the owner or
operator of a large-scale data center, public water system, wastewater utility,
sewerage authority, or other relevant entity to submit such information as the
department deems necessary, including, but not limited to, information related
to:

���� (a) total annual and monthly
water use;

���� (b) peak seasonal demand;

���� (c) the sources of water used
and the percentage obtained from each source;

���� (d) whether the water used is
potable, reclaimed, or other non-potable water;

���� (e) cooling technology or
cooling method employed;

���� (f) material operational
changes affecting water consumption; and

���� (g) any significant water
reuse, recycling, or conservation practices;

���� (2) rely on permit records,
utility records, estimates, and any other reasonably available information, if
historical data is unavailable, incomplete, or inconsistent; and

���� (3) consult and coordinate
with the board and utilize any relevant data reported to the board pursuant to
State law.

���� c.� No later than fifteen
months after the effective date of this act, the department shall submit a
written report, to the Governor and, pursuant to section 2 of P.L.1991, c.164
(C.52:14-19.1), to the Legislature, concerning the findings of the evaluation
conducted pursuant to subsection a. of this section.� The report may include,
at the discretion of the Commissioner of Environmental Protection,
recommendations for legislation to improve the laws of this State concerning
the use of water by large-scale data centers.

���� 3.��� This act shall take
effect immediately and shall expire upon submission of the written report to
the Governor and the Legislature pursuant to section 2 of this act.

STATEMENT

����� This bill requires the Department of Environmental
Protection (department) to conduct an evaluation of the short and long term

effects of water use by large-scale data centers.�

����� Under the provisions of this bill, the study is to
consider the short-term effects of water use by large-scale data centers,
measured over the preceding three years; the long-term effects of water use by
large-scale data centers, measured over the preceding seven years; the
anticipated effects of water use by large-scale data centers which may be
constructed in the future, as distinct from existing large-scale data centers;
any efforts undertaken by the department or by large-scale data center
operators to reduce the use of water by large-scale data centers; how the use
of water by large-scale data centers has impacted overall State water use and
costs; how the use of water by large-scale data centers has affected the
operational efficiency, cooling requirements, or uptime of the large-scale data
center due to water constraints; the direct or indirect costs associated with
the use of water by large-scale data centers, including impacts on public water
systems, ratepayers, or infrastructure upgrades required to meet demand; an
analysis of any feasible water use reduction strategies which could be
implemented by any large-scale data centers operated in the State; and any
other information which the department determines to be necessary to produce a
comprehensive study.

����� The bill provides that,� in conducting the evaluation
required under the bill, the department may: (1) require the owner or operator
of a large-scale data center, public water system, wastewater utility, sewerage
authority, or other relevant entity to submit any information that the
department deems necessary; (2) rely on permit records, utility records,
estimates, and any other reasonably available information, if historical data
is unavailable, incomplete, or inconsistent; and (3) consult with the Board of
Public Utilities (board) and utilize any relevant data reported to the board
pursuant to State law.

����� Within fifteen months of the bill�s effective date,
the department would be required to submit a report on the findings of the
study to the Governor and the Legislature.� The Commissioner of Environmental
Protection is authorized to submit recommendations for legislation to improve
State laws regarding the use of water by large-scale data centers.
�